1. Opportunities, Challenges and Solutions UPIC & STP 820
Electronic Payments – Safe and Easy for Government Entities of all Sizes
The Final Frontier
Opportunities, Challenges and Solutions
UPIC & STP 820
Sharon Jablon
Business Development Manager
August 18, 2009 1

2. TCH offers a full line of payment services that facilitate the migration of paper to electronic payments
TCH provides private-sector, global payment systems and infrastructure to clear and settle 50 million payments for $2.2 trillion each day
SVPCO - Check Services
Regional paper check exchanges, transportation, settlement and adjustments
SVPCO - Electronic Clearing Services
Image Exchange Gateway & Settlement
EPN
ACH Processing & Association services
CHIPS
Wire: Large value, real time, final payments

3. Agenda
Market Needs & Trends
Today’s Solutions
UPIC
STP 820
Q&A 3 3

4. Market Needs & Trends
Government Entities and Larger Corporations have been requesting electronic payments and would like to pay electronically
Their smaller trading partners had no tools to comply

5. Large Receiver/Vendor
Remittance Processing Associated With Check Processing
Has to be keyed into receivables by receiver
or Converted at the lockbox
…..More accurate when keyed by sender from source
… Much more accurate when comes directly from AP
SMEs
Large Receiver/Vendor

6. Customer Service calls to discuss payments take time
and cost both payors and receivers money

7. Why $ and Data Together? Receivers do not want to:
Be directed to web sites to find the payment related info
Receive and review s to find explanation about payments
Receive Faxes with info pertaining to a payment
All of these cause inconsistencies in reconcilement!
This wastes time and $

8. What Stands in the way of Migrating To Electronic Payments?
Reluctance to divulge sensitive banking information
Preference for the Credit “push” versus Debit “pull” model
Many AP/AR packages cannot create/receive electronic payments
No integration with cash management and accounting systems
Conflicting, multiple message formats
A minimum amount of standard information is needed
Float
UPIC
STP 820

9. Why Haven’t Electronic Payments between Trading Partners Grown More?
We have had….
Software tools
Trading partner incentives
But we had challenges that impeded mass adoption…
Limited software products
Windows installations
One-on-one training
Lag in development of browser based tools
And we haven’t had….
Easy to use formats and tools that were readily available
Previous attempts were not elegant and did not gain adoption 9

10. Business-to-Business Payments
A Solution Exists!
EPN Research

11. Universal Payment Identification Code (UPIC®)
Masks routing and account numbers
Credit payments only, blocks debits
Use with any cash management or accounts payable system
Universal routing number
Issued and maintained by banks
Portable
UPICs help prevent fraud

12. How UPICs Work

13. Requesting Electronic Payments
We encourage you to send payments electronically via ACH credit or EDI Payments to:
ABC Treasurer’s Office
ABA #
UPIC/Acct #
Reference # - RJ8049
Invoice #

14. Universal Routing Number Universal Routing Number
Online Cash Manager
UPIC / Account
Number
A/P Vendor Setup Screen
UPIC / Account
Number
Universal Routing Number

15. Computer Manufacturing Wholesale Distributors
Universal Payment Identification Code
Receiving industry wide adoption around the United States
Paper Supplier
Telecommunications
Real Estate
Financial Services
Hotel Industry
Banking Association
Agriculture
Fund Raising
Education
Computer Manufacturing
Government Agencies
Employment
Medical Technologies
Benefits
Administration
Wholesale Distributors

16. What are UPIC Adopters Saying?
Oregon State Treasurer
State Treasurer of Nebraska
Verizon
NACHA

17. Financial Institutions offering UPIC:
23 Financial Institutions have issued 825 UPICs
Total UPIC payments through
August 1, M valued
at over $52Billion

18. The Past - Electronic Payment with Remittance Information
Accounting Software
& Cash Management Mostly manual entry and single invoice
Accounting Software Limited electronic payment capabilities
Cash Management
Mostly manual entry and single invoice
Financial Institution
e-payment with
Limited remittance information
Remittance information
Not delivered
Fax
Datafile
820
BAI
Proprietary (custom) larger customers)
Financial Institution
e-payment with limited
remittance information

19. Business-to-Business Payments
A Solution Exists!
STP820

20. What is the Straight-through Processing - STP 820?
Streamlined standard for making electronic payments
with remittance information.
Easy to implement & easy to use.

21. STP 820 – Sleek…easy to implement in cash management and accounting software
10 Data Elements
In the remittance area there are 10 data elements with places for explanation if desired.
Fields Mandatory
Customer Account Number X
Customer Name X
Invoice Number
Invoice Date
Invoice Gross Amount
Amount Paid
PO Number
Discount Amount
Adjustment Amount
Adjustment Reason Code
12 adjustment reason codes
01 Pricing Error
03 Extension Error
04 Item Not Accepted - damaged
05 Item Not Accepted - Quality
06 Quantity Contested
07 Incorrect Product
11 Returns - Damage
12 Returns - Quality
59 Item not received
75 Total order not received
81 Credit as Agreed
CM Covered by Credit Memo

22. STP 820 Implementation at Union Bank of California
Making a Payment
What could be easier

23. Approved/Certified by
Critical Mass
Approved/Certified by
Promoted by
Supported by
Adopted by

24. Today: The Beauty of the STP 820
EDI820
EDI820
/STP820
STP820
Payables
Receivables
Accounting Software
Customer Account Number
Customer Name
Invoice Gross Amount
Amount Paid
Invoice Number
Invoice Date
PO Number
Discount
Adjustment Amount
Adjustment Code
Accounting Software
Customer Account Number
Customer Name
Invoice Gross Amount
Amount Paid
Invoice Number
Invoice Date
PO Number
Discount
Adjustment Amount
Adjustment Code
CTX with STP 820
Bank’s
Web Cash Manager
STP 820
ACH Operator
CTX with STP 820
CTX with STP 820
A Standard that can be delivered by any bank

25. Payment to Energy Vendor Energy Company Posts to Receivables
Customer Experience with Bank Cash Management Package
“Any” Government Entity or Company
UBOC Web Cash Manager
Payment to Energy Vendor
Energy Company Posts to Receivables

26. Customer Experience with STP 820 & Accounting Software
Verizon
Posts to
Accounts Receivables
- STP 820 module
The Clearing House
(Great Plains Dynamics
Accounts Payable
– STP 820 module)
Citibank
Verizon’s Bank
ACH Operator

27. QuickBooks Accounts Payable from Coastal Software

28. How can Government & Trading Partners use the STP 820?
Banking Cash Management Software
Accounting software from resellers
Middle-ware from software providers
CALL TO ACTION!!!

29. But it will save money

30. Enabling CHIPS and Fedwire to Carry Remittance Information
What the Future Holds
Enabling CHIPS and Fedwire to Carry Remittance Information
Research undertaken in October 2006
STP 820 data elements will simplify invoice payment and reconcilement
ISO has amended the ISO standard to include all STP 820 data elements
Fedwire & CHIPS working together on an implementation – Scheduled for 10/2010

31. Adoption is Growing

32. Resources
The Clearing House research, “The Remaining Barriers to e-Payments and Straight-through Processing” at:
EPN STP 820 materials
UPIC materials
Sign-up for webinars
Next webinar will be August 26, :00 P.M.

33. Thank you Sharon Jablon, AAP EPN, Business Development Manager